Karnataka High Court

Smt. Laxmi @ Laxmidevi vs The Managing Director on 31 July, 2024

Author: H.T. Narendra Prasad

Bench: H.T. Narendra Prasad

                                                 -1-
                                                              NC: 2024:KHC:30322
                                                            MFA No. 4225 of 2018




                           IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                               DATED THIS THE 31ST DAY OF JULY, 2024

                                              BEFORE
                           THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD
                      MISCELLANEOUS FIRST APPEAL NO. 4225 OF 2018 (MV)
                      BETWEEN:
                      1. SMT. LAXMI @ LAXMIDEVI
                         W/O LATE MANJUNATHA ALIAS MANJANNA
                         AGED ABOUT 27 YEARS

                      2.    SANJAY
                            S/O LATE MANJUNATHA @ MANJANNA
                            AGED ABOUT 10 YEARS
                            (MINOR REPRESENTED BY NATURAL
                            GUARDIAN MOTHER, THE 1ST APPELLANT)
                            BOTH ARE R/AT Y C PALYA SAMPIGE AT POST
                            DANDINA SHIVARA HOBLI
                            TURUVEKERE TQ, TUMAKURU DISTRICT 572215
                            NOW R/AT NEAR MARAMMA TEMPLE
                            CHANNAPPANAPALYA, UPPARAHALLI
                            SOMESHWARAPURAM, TUMAKUR 572101.

                      3.    SMT LAKSHMAMMA
Digitally signed by         W/O BYATEGOWDA
HEMALATHA A                 AGED ABOUT 53 YEARS
Location: HIGH              R/O CHOLASANDRA, KASABA HOBLI
COURT OF
KARNATAKA                   MELLAHALLI POST
                            NAGAMANGALA TALUK
                            MANDYA DISTRICT 571432
                                                                   ...APPELLANTS
                      (BY SRI. RAMESH KUMAR R V & .,ADVOCATE)

                      AND:
                      1. THE MANAGING DIRECTOR
                         VRL LOGISTICS LTC
                         DESHMUK TRANSPORT NBAGAR
                         NEAR NEW PUNNE NAKA, N.H.9
                                  -2-
                                               NC: 2024:KHC:30322
                                             MFA No. 4225 of 2018




     KONDI VILLAGE, SOLAPUR DISTRICT
     MAHARASHTRA 413255.

2.   THE UNITED INDIA INSURANCE CO LTD
     1ST FLOOR, PB NO.54
     JAYADEVA COMPLEX
     B H ROAD, TUMKUR TOWN 5712101
                                        ...RESPONDENTS
(BY SRI.ARAVIND M NEGLUR., ADVOCATE FOR R1:
    SRI. RAVISH BENNI, ADVOCATE FOR R2)
     THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT
AGAINST THE JUDGMENT AND AWARD DATED:08.11.2017
PASSED IN MVC NO.594/5015 ON THE FILE OF THE
ADDITIONAL SENIOR CIVIL JUDGE & CJM, TUMAKURU PARTLY
ALLOWING THE CLAIM PETITION FOR COMPENSATION AND
SEEKING ENHANCEMENT OF COMPENSATION.

     THIS APPEAL, COMING ON FOR FINAL HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:


CORAM:    HON'BLE MR JUSTICE H.T. NARENDRA PRASAD

                      ORAL JUDGMENT

1. This appeal under Section 173(1) of the Motor

Vehicles Act, 1988 (hereinafter referred to as 'the Act', for

short) has been filed by the claimants being aggrieved by

the judgment and award dated 08.11.2017 passed by the

Additional Civil Judge & C.J.M., Tumukur in MVC

No.594/2015.

NC: 2024:KHC:30322

2. Facts giving rise to the filing of the appeal briefly

stated are that on 24.04.2015, when the deceased-

Manjunatha went to Haveri to unload materials. After the

unloading, he was returning on 25.04.2015 to his Village

through Chitradurga, via NH-04. At about 1.00 a.m., he

reached near tiles factor of Burujanaroppa Village, Hiriyur

Taluk, Chiradurga District. At that time, the deceased

parked his vehicle to answer nature call and subsequently,

he was checking the tires of the vehicle. At that point of

time, the heavy goods vehicle lorry bearing registration

No.MH-13-R-2922 came from Chitradurga side in high

speed, rashly and negligently endangering the human life

and personal safety of others and dashed against the

deceased. As a result of the aforesaid accident, the

deceased sustained grievous injuries and succumbed to

the injuries.

3. The claimants filed a petition under Section 166 of

the Act seeking compensation for the death of the

deceased along with interest.

NC: 2024:KHC:30322

4. Upon service of notice, the respondent Nos.1 and 2

appeared through counsel and filed written statement

denying the averments made in the claim petition.

5. On the basis of the pleadings of the parties, the

Claims Tribunal framed the issues and thereafter, recorded

the evidence. The claimants, in order to prove the case,

examined claimant No.1 as PW-1, and other two witnesses

as PW-2 and PW-3, and got exhibited documents namely

Ex.P1 to Ex.P9. On behalf of respondents, one witness was

examined as RW-1 and got exhibited documents namely

Ex.R1 to Ex.R3. The Claims Tribunal, by the impugned

judgment, inter alia, held that the accident took place on

account of rash and negligent driving of the offending

vehicle by its driver, as a result of which, the deceased

sustained injuries and succumbed to the injuries. The

Tribunal further held that the claimants are entitled to a

compensation of Rs.8,82,320/- along with interest at the

rate of 6% p.a. and directed the Insurance Company to

NC: 2024:KHC:30322

deposit the compensation amount along with interest.

Being aggrieved, this appeal has been filed.

6. The learned counsel for the claimants has raised the

following contentions:

a) Firstly, the claimants assert that the deceased was

approximately aged about 29 years at the time of the

accident and had a monthly income of Rs.9,000/- as a

driver. However, the assessment of income of the

deceased at Rs.6,120/- by the Tribunal is unjustified and

erroneous.

b) Secondly, as per the law laid down by the Hon'ble

Supreme Court in the case of NATIONAL INSURANCE CO.

LTD. -v- PRANAY SETHI AND OTHERS [AIR 2017 SC

5157], in cases the deceased was self-employed or

received a fixed salary, an addition of 40% of the

established income towards 'future prospects' is warranted

when the deceased was below the age of 40 years. This

principle shall be considered in the present case.

NC: 2024:KHC:30322

c) Thirdly, as per the judgment of the Hon'ble Supreme

Court in the case of MAGMA GENERAL INSURANCE CO.

LTD. -V- NANU RAM [2018 ACJ 2782], each of the

claimants is entitled to compensation of Rs.40,000/- under

the head of 'loss of love and affection and consortium'.

d) Lastly, considering the age and avocation of the

deceased, the overall compensation awarded by the

Tribunal is inadequate and on the lower side.

With the above contentions, the learned counsel

sought to allow the appeal.

7. On the other hand, the learned counsel for the

Insurance Company has raised the following counter-

contentions:

a) Firstly, although the claimants claim that the

deceased was earning Rs.9,000/- per month, they failed to

substantiate their claim with supporting documents.

Consequently, the Tribunal has correctly assessed the

income of the deceased notionally.

NC: 2024:KHC:30322

b) Secondly, since the claimants have not established

the income of the deceased, they are not entitled for

compensation towards 'future prospects'.

c) Thirdly, on appreciation of oral and documentary

evidence and considering the age and avocation of the

deceased, the overall compensation awarded by the

Tribunal is just and reasonable.

With the above contentions, the learned counsel

sought to dismiss the appeal.

8. Heard the learned counsel for the parties and

perused the judgment and award of the Tribunal.

9. It is not in dispute that Manjunath died in the road

traffic accident occurred on 24.04.2015 due to rash and

negligent driving of the offending vehicle by its driver.

10. The claimants claim that deceased was earning

Rs.9,000/- per month, but failed to produce supporting

documents to substantiate their claim. In the absence of

NC: 2024:KHC:30322

proof of income, the notional income has to be assessed.

According to the guidelines issued by the Karnataka State

Legal Services Authority, for accidents occurred in the year

2015, the notional income of the deceased shall be taken

at Rs.9,000/- p.m. To the aforesaid income, 40% has to

be added on account of future prospects in view of the law

laid down by the Constitution Bench of the Supreme Court

in 'PRANAY SETHI' (supra). Thus, the monthly income

comes to Rs.12,600/-. The Tribunal has rightly deducted

1/3rd of the income of the deceased towards personal

expenses. Thus the monthly income of the claimant comes

to Rs.8,400/-. The deceased was aged about 29 years at

the time of the accident and multiplier applicable to his

age group is '17'. Thus, the claimants are entitled to

compensation of Rs.17,13,600/- (Rs.8,400*12*17) on

account of 'loss of dependency'.

11. In addition, the claimants are entitled to

compensation of Rs.15,000/- on account of 'loss of

estate' and compensation of Rs.15,000/- on account of

NC: 2024:KHC:30322

'funeral expenses'. Claimant No.1, wife of the deceased is

entitled for compensation of Rs.40,000/- under the head

of 'loss of spousal consortium'.

12. In view of the law laid down by the Supreme Court in

the case of 'MAGMA GENERAL INSURANCE' (supra),

claimant No.2, son of the deceased is entitled for

compensation of Rs.40,000/- under the head of 'loss of

parental consortium' and claimant No.3, mother of the

deceased is entitled for compensation of Rs.40,000/-

each under the head of 'loss of filial consortium'.

13. Thus, the claimants are entitled to the following

compensation:

           Compensation under            Amount in
             different Heads               (Rs.)

        Loss of dependency                 17,13,600

        Funeral expenses                       15,000

        Loss of estate                         15,000

        Loss of spousal consortium             40,000
                                - 10 -
                                          NC: 2024:KHC:30322





        Loss of Parental consortium           40,000

        Loss of Filial consortium             40,000

                       Total              18,63,600

14. In the result, the following order is passed:

ORDER

a) The appeal is allowed in part.

b) The judgment of the Claims Tribunal is modified.

c) The claimants are entitled to a total compensation of

Rs.18,63,600/- as against Rs.8,82,320/- awarded by the

Tribunal.

d) The Insurance Company is directed to deposit the

compensation amount along with interest at 6% p.a. from

the date of filing of the claim petition till the date of

realization, within a period of six weeks from the date of

receipt of a copy of this judgment.